NATIONAL BALANCE

Evening Post, Volume C, Issue 87, 9 October 1920, Page 6

NATIONAL BALANCE

NEW ZEALAND'S POSITION

FINANCIAL SOLVENCY.

The war debt and ite bearing on national finance was referred to by the Prime Minister in moving the second leading of the Loan Bill yesterday. The gross public debt on 31st March last was £201,170,755, compared with £99,832,510 in 1914, an increase of £101,338,245. Except for about £12,000,000, this was all due to the war.

Against theae liabilities they had tangible assets amounting to £51,709,----791 mclu^-ig the following main items :— Sinking lunda £7,257,400, investments of cash balances of publio accounts £20,----206,000, Bank of New ZeaJand shares £875,000, Beserve Fund securities, £800,000, advances made by Treasury £14,478,000, cash in the Public Account £6,210,000, cash in the hands of officers ■£1,050,000. The Bank of New ZeaJand shores were quoted at the face value, but if they were to be offered in the open market, they would probably be worth £2,000,000.

The expenditure of the Government upon railways, public buildings, telegraphs, Native lands settlement, land harbours, lighthouses,. electrical installations, etc., up to 31st March last had amounted to £72,317,463. These items were nearly air directly interest earning, and they were certainly worth more than they cost. In addition, there was Crown land remaining of an estimated value of £26,000,000. Then there was the expenditure of £18,125,000 on roads, immigration. State coal mines, drainage of land, and other services that were indirectly productive. This showed that the assets approached within £52,143,321 of the liabilities. Against this there was the private wealth of the Dominion, which the Treasury estimated at £500,----000,000.

The Hon. J. A. Hanan : "The country is well off financially. Better than any other country."

The Prime Minister said he -thought :t was. A great part of the war debt was held in the country, so that the interest did not go outside. .... .■-..,

The increase in the ordinary publio debt, amounting to £12,299,755 was due to money raised for the following purposes :—Publio works, £7,659,930; State forests, railway improvement, and. electric power supply (directly reproductive works), £989,000; land and swamp drainage, river improvement, etc! (indirectly productive), £349,000; purchase of lands, £3,124,000; advances for fruit preserving, cold storage,' mining, and kaurigum industry, £221,360;, scenery preservation (unproductive), £10,000.

Speaking later in the evening, the Prime Minister said he had ascertained that as nearly as possible half the publio debt of the country was held in New Zealand. ■